Crypto to count toward mortgages at Fannie Mae and Freddie Mac

In a significant move that could transform the mortgage landscape, there are now proposals to allow cryptocurrency holdings to be considered as a qualified asset for mortgages backed by Fannie Mae and Freddie Mac. This would be a major departure from previous policy and a big step toward integrating digital assets into the mainstream housing finance system.

Here’s a breakdown of the current situation:

The FHFA Directive: In late June 2025, William Pulte, the Director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, issued a directive. This order instructed the two government-sponsored enterprises (GSEs) to create proposals for how a borrower’s cryptocurrency holdings could be included in their risk assessment for a single-family mortgage.

The “21st Century Mortgage Act”: Following this directive, Senator Cynthia Lummis (R-WY) introduced the “21st Century Mortgage Act” to codify this change into law. This bill would require Fannie Mae and Freddie Mac to consider digital assets as part of their mortgage risk assessments, and it notably prohibits forcing the borrower to convert these assets into U.S. dollars.

The Old Rules vs. the New Proposal: Previously, to use crypto for a mortgage, a borrower would have to sell their digital assets, convert them to U.S. dollars, and “season” the funds in a bank account for a period of time before a lender would consider them. The new proposal would allow the assets to be counted directly, without being converted, which could be a significant benefit for crypto holders who don’t want to sell their assets.

Key Considerations and Opposition: The move has not been without controversy. While proponents, like Senator Lummis, argue that it’s a necessary step to help a new generation of wealth builders achieve homeownership, some Democratic senators have raised concerns. They worry that the volatility of cryptocurrencies could pose risks to the stability of the housing market and leave borrowers vulnerable to default if the value of their assets drops suddenly. The new policies would likely include measures to account for this volatility, such as applying a discount or “haircut” to the value of the crypto assets.

Next Steps: Fannie Mae and Freddie Mac are now tasked with drafting their proposals, which must then be approved by their boards of directors and the FHFA. This process will determine the specifics of how crypto assets will be valued and what risk mitigation measures will be put in place.

The Old Rules vs. the New Proposal: Previously, to use crypto for a mortgage, a borrower would have to sell their digital assets, convert them to U.S. dollars, and “season” the funds in a bank account for a period of time before a lender would consider them. The new proposal would allow the assets to be counted directly, without being converted, which could be a significant benefit for crypto holders who don’t want to sell their assets.